South Korean shipbuilder Samsung Heavy Industries has more than doubled its quarterly net profit by homing in on high-margin LNG carriers and floating LNG production units.
SHI reported a net third-quarter profit for the period to the end of September of KRW 71.4bn ($51.7m), up from KRW 35.6bn in the same three months of 2023.
“Increased orders for value-added ships, such as liquefied natural gas carriers and floating LNG facilities, propped up the bottom line,” the company said.
The shipbuilder’s operating profit also rose, up 58% at KRW 119.9bn for the quarter, compared to KRW 75.9bn in the same period a year ago.
Sales inched up 15% to KRW 2.32trn from KRW 2.03trn in the third quarter of 2023.
SHI, which has an order backlog of $31.9bn, has notched up $5.4bn worth of orders to date this year meeting 57% of its annual target of $9.7bn.
The shipbuilder said it is “on track” to achieve its annual earnings guidance of a KRW 400bn operating profit on sales of KRW 9.7trn. This compares with an operating profit of KRW 233bn and sales of KRW 8trn in 2023.
